World Bank accuses Bombardier of corruption to win contract in Azerbaijan
Could lead to the Montreal-based transportation giant being blacklisted from projects funded by the international financial institution
Click Like to Follow Fliegerfaust Facebook page to get the News ASAP / Share to share this post now.
May 10, 2019 - by MARK MACKINNON for theglobeandmail.com
- BTSE and BTRU are acronyms for Bombardier Transportation Sweden and Bombardier Transportation Russia, the two units that are directly involved in the alleged fraud. However, the audit's findings point all the way to corporate headquarters in Montreal.
Bombardier Inc. allegedly used corruption and collusion to win a contract in Azerbaijan – then obstructed an investigation of the deal – according to a World Bank audit that could lead to the Montreal-based transportation giant being blacklisted from projects funded by the international financial institution.
The findings of the audit, which were obtained by The Globe and Mail, accuse the company of colluding with senior officials at Azerbaijan Railways to win a 2013 contract worth US$339-million to install rail-signalling equipment in the country, which is located between Russia and Iran. The deal was 85-per-cent financed by the World Bank.
If Bombardier does not convince the investigators, the show-cause letter says, the findings would be passed on to the World Bank's Suspension and Debarment Officer to decide on possible punishment. "Sanctions proceedings in this case could mean that BTSE, BTRU, and Bombardier Inc., their affiliates, successors, assigns, and associated individuals, could be declared ineligible to receive Bank-financed contracts or to participate in Bank-financed activities," it reads.